What the OneMain Credit Card Is
OneMain Financial offers a secured credit card designed for people building or rebuilding credit. You put down a cash deposit, and that deposit becomes your credit limit — so a $500 deposit gives you a $500 limit. OneMain reports your payment activity to all three credit bureaus, which means on-time payments can help raise your credit score over time.
This is not the same as a personal loan from OneMain, though the company offers both. The credit card is a separate product with its own terms, fees, and approval process. You use it like any other credit card: make purchases, receive a monthly statement, and pay a balance.
The card comes with an annual fee and a relatively high interest rate. Because it is secured, approval is much easier than with unsecured cards — your deposit protects OneMain if you stop paying. That trade-off makes it useful if you have no credit history, recent late payments, or a low credit score, but it costs more than cards available to people with stronger credit.
Key Takeaways
- You must deposit cash upfront, which becomes your credit limit, and OneMain holds that deposit as collateral.
- The card charges an annual fee (the amount varies) plus interest on any balance you carry month to month.
- OneMain reports to all three credit bureaus, so consistent on-time payments can improve your credit score.
- You can request a credit limit increase after a period of on-time payments, and your deposit may be returned if you graduate to an unsecured card.
- The interest rate is high compared to unsecured cards, so carrying a balance costs significantly more than paying in full each month.
How to Get the Card and What You Need
You can start the process online at OneMain's website or visit a branch in person. OneMain has physical locations in most states, which some people prefer because they can ask questions face-to-face.
You will need to provide your Social Security number, proof of income (a recent pay stub or tax return), and a government-issued ID. OneMain will check your credit report and verify your identity. The company does a soft credit pull initially, which does not affect your credit score, but a hard pull happens if you move forward — that does lower your score slightly and temporarily.
You must decide on your deposit amount. The minimum is typically $500, though OneMain may allow higher deposits. Your deposit is held in a savings account and earns a small amount of interest, but you cannot touch it while the card is active — it stays locked as collateral. If you close the account or stop paying, OneMain can use the deposit to cover what you owe.
Approval usually takes a few business days. Once approved, you receive the physical card by mail, and you can also request a digital card number to use when ready for online purchases while you wait.
Fees and Interest Rates You Will Pay
The annual fee is charged once per year, usually in the first month and then on each anniversary. The exact amount varies — OneMain's website shows the current fee when you check your options. This fee is separate from interest and is charged whether you use the card or not.
The interest rate (called the APR, or annual percentage rate) is much higher than unsecured cards — typically in the range of 24% to 30%, though the exact rate depends on your credit profile and the state where you live. If you carry a balance of $500 at 27% APR, you pay roughly $11 per month in interest alone. This is why paying your full balance each month matters: if you only make minimum payments, interest costs add up quickly.
There is no penalty APR for late payments, but late fees explore if you miss a due date. OneMain also charges a fee if your payment bounces due to insufficient funds. Read the terms carefully, as fees vary by state.
There is no foreign transaction fee if you use the card abroad, which is useful for travel, but the high APR still applies to any balance you carry.
How Using the Card Affects Your Credit Score
OneMain reports your account activity to Equifax, Experian, and TransUnion — the three major credit bureaus. This means every payment you make (or miss) shows up on your credit report. On-time payments help your score because payment history is the largest factor in how credit scores are calculated.
Your credit utilization — how much of your limit you use each month — also matters. If your limit is $500 and you charge $450, your utilization is 90%, which can lower your score. Keeping utilization below 30% (so under $150 on a $500 limit) is better for your score, even if you pay the full balance.
Hard inquiries and new accounts both cause small, temporary score drops when you first open the card. But over months of on-time payments, those dips fade and your score typically rises. People who use the card responsibly for 6 to 12 months often see meaningful improvements.
If you close the card after building credit, the account stays on your report for up to 10 years, so the positive history remains. However, closing it also removes that available credit from your utilization calculation, which can briefly lower your score.
When to Graduate to an Unsecured Card
After 6 to 12 months of on-time payments, you may become may be able to access for an unsecured card — one that does not require a deposit. OneMain may offer you an upgrade to an unsecured version of their card, or you may may have access to for cards from other issuers.
When you graduate, OneMain returns your deposit. The company does not automatically move you; you have to request the upgrade or explore for a different card. Some people keep the secured card open even after getting an unsecured one, because closing accounts can hurt your score. Others close it to avoid paying the annual fee twice.
If you are denied an upgrade, keep using the secured card responsibly. Your credit score will continue to improve, and you can try again in a few months or explore for unsecured cards from other lenders.
Alternatives to the OneMain Credit Card
Other secured cards exist and may have lower fees or interest rates. Capital One Secured, Discover Secured, and U.S. Bank Secured are common alternatives. Compare the annual fee, APR, and minimum deposit across cards before deciding.
If you have a bank account, ask your bank whether they offer a secured card — some do, and you may get better terms as an existing customer. Credit unions also offer secured cards, sometimes with lower fees.
If you are not ready for a credit card, a credit-builder loan from a credit union or online lender is another path. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports to the bureaus. You build credit without the temptation to overspend, though you do pay interest.
If you have no credit history at all, becoming an authorized user on someone else's account (with their permission) can help you build a score without opening your own card. The account holder's payment history shows on your report, though you do not have to make payments yourself.
What Happens If You Miss a Payment
If you miss a due date, OneMain charges a late fee and reports the late payment to the credit bureaus. A single late payment can drop your score by 50 to 100 points, depending on how much damage your report already has. The impact fades over time, but it stays on your report for seven years.
If you miss multiple payments or fall significantly behind, OneMain may close your account. When an account is closed by the issuer (rather than by you), it looks worse on your credit report than a voluntary closure. Your deposit is still held, and OneMain may use it to cover what you owe.
If you are struggling to make a payment, contact OneMain before the due date. Some issuers offer hardship programs or temporary payment reductions, though OneMain's policies vary by state. It is better to ask than to miss a payment and damage your credit.
Frequently Asked Questions
Can I use the OneMain credit card right away, or do I have to wait for the physical card?
You can request a digital card number when ready after approval and use it for online purchases the same day. The physical card arrives by mail within 7 to 10 business days. Some people use the digital number to start building their credit history while waiting for the plastic card.
What happens to my deposit if I pay off the card and close it?
OneMain returns your deposit to the bank account you provided, usually within 5 to 7 business days after the account closes. If you owe a balance when you close, OneMain deducts what you owe from the deposit first. Make sure your account is paid in full before closing if you want the full deposit back.
Will the OneMain credit card hurt my credit score when I open it?
Opening the card causes a small, temporary drop because of the hard inquiry and the new account. Your score typically recovers within a few months, especially if you make on-time payments. The long-term benefit of building a positive payment history outweighs the short-term dip.
Can I increase my credit limit without adding more money?
After several months of on-time payments, OneMain may increase your limit without requiring an additional deposit. You can also request a limit increase by contacting the company. Some increases are automatic; others require you to ask. Adding more to your deposit always increases your limit, but that ties up more of your cash.
Is the OneMain credit card better than a personal loan from OneMain?
They serve different purposes. A credit card is better if you want to build credit over time and use credit flexibly. A personal loan is better if you need a lump sum of cash upfront and want a fixed repayment schedule. OneMain's personal loans typically have higher interest rates than the credit card, so the card is usually the better choice for credit building.